Don’t Let a Down Payment Hold You Backadmin
A recent borrower I worked with was a past client that I helped purchase a condo 5 years ago and at the time it was the perfect pad for him and his girlfriend. A few years down the road they got married, each graduated from the University of Utah, and have progressed in their careers.
As the years went on, they found their Condo was getting a little cramped. They have plans to start a family soon and really wanted a house where they could invite friends over to entertain (you know, as soon as the pandemic is behind us).
They needed the equity from their condo to use as the down payment on the new house, (which by the way had appreciated $100,000 from when they bought it 5 years ago). However, the market is really tough right now and they did not want the stress of listing their condo, going under contract, and then having less than a week to find and go under contract on a new house.
We were able to save the clients a lot of stress by buying their new house first and selling the condo later on. We were able to accomplish this timeline by opening a HELOC (home equity line of credit) on their condo. We accessed the equity from the HELOC and used that as the down payment for their new home.
They were able to be patient and wait for the perfect house to pop up on the market. Once it did, they were able to get the house under contract quickly thanks to their pre-qualification. With the purchase complete they were able to list and sell their condo and pay off the HELOC.
They are now extremely happy with their big beautiful new house and can’t wait for what the future will bring for them and their family.
If you are feeling like you are stuck in your property due to lack of means for a down payment, there may be a direction like this one that we can take to help you get into a better housing situation.